Let's see ...
4 losses.
They lost to the Spurs. Better team.
They lost to the Raptors. Better team.
They lost to the Pacers, twice. They're on par with the Pacers, but the Pacers have superior talent, and the games were close. So that's not surprising.
They beat the Sixers, a much worse team.
They beat the Bucks, a team that's about the same as them -- shallower but with better talent.
They blew out the Wizards, a team that's probably on a similar level as them right now, but with much better high end talent.
Based on all that, I'd say it's been about where you'd expect. If anything, blowing out the Wizards felt a little bit like overachieving, but that's balanced with losing twice to the Pacers.
Looking at the East, it's pretty much as I expected. There is a lot of parity, aside from the Cavs, Hawks, and Bulls at the top end, and the Sixers and Nets at the lower end.
I think you could take the other 10 teams in the East and play the season 100 times and there would be a lot of variance in the standings. Who makes the playoffs will come down to who gets hot and for how long.